Obtaining a sales tax refund from the Federal Board of Revenue (FBR) remains a challenging process for many taxpayers in Pakistan. However, refund rejection can largely be avoided if the claim is filed correctly with complete and compliant supporting documents.
(more…)Author: Shahnawaz Akhter
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SAI criticizes cross-subsidy burden on industrial power tariffs
Karachi, January 14, 2026 – The SITE Association of Industry (SAI) has strongly criticized the continued imposition of cross-subsidy on industrial electricity tariffs, warning that the policy is eroding industrial competitiveness, discouraging investment and hindering sustainable economic growth.
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How Importers Can Claim Sales Tax Refund in Tax Year 2026
Importers in Pakistan often pay excess sales tax at the clearance stage due to errors, incorrect valuation, or subsequent relief granted by appellate authorities. To address this, the Sales Tax Rules, 2006 (updated for Tax Year 2026) provide a clear mechanism for claiming import-related sales tax refunds under Rule 34A.
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Sales Tax Refunds Against Zero-Rated and Non-Zero-Rated Supplies – Tax Year 2026
The Sales Tax Rules, 2006, as updated for Tax Year 2026, clearly define the eligibility, scope, and procedure for claiming sales tax refunds on zero-rated supplies and non-zero-rated (taxable) supplies under Rule 33 and Rule 34. Understanding the distinction is critical to avoid claim rejections and audit issues.
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Processing of Refund Claims through STARR Channel – Tax Year 2026
The Federal Board of Revenue (FBR) has streamlined the processing of sales tax refund claims through the STARR (Sales Tax Automated Refund Repository) channel under Rule 30 and Rule 31 of the Sales Tax Rules, 2006, as updated for Tax Year 2026. This digital mechanism aims to enhance transparency, reduce delays, and ensure faster disbursement of legitimate refunds.
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KTBA highlights challenges in Sindh Revenue Board’s CPC adoption
Karachi, January 14, 2026 – The Karachi Tax Bar Association (KTBA) hosted a seminar addressing the adoption of Central Product Classification (CPC) Version 2.1 by the Sindh Revenue Board (SRB), highlighting practical challenges and implications for businesses in the province.
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FBR flags key sectors for stronger enforcement to boost revenue collections
Islamabad, January 13, 2026 – The Federal Board of Revenue (FBR) has identified critical sectors where revenue collection declined during the fiscal year 2024-25, urging tax authorities to enhance enforcement and adopt targeted strategies to increase compliance and overall revenue.
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FBR releases highlights of record-breaking revenue collection achievements for FY25
Islamabad, January 13, 2026 – The Federal Board of Revenue (FBR) has released key highlights of its revenue collection performance for the fiscal year 2024-25, reporting a strong growth across direct taxes, sales tax, customs, and federal excise duties.
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How FBR’s RMS Works for 2026 Sales Tax Refund Claims
The Risk Management System (RMS) of the Federal Board of Revenue (FBR) plays a central role in ensuring transparent, automated, and risk-based processing of sales tax refund claims in Pakistan. For tax year 2026, refund claims are no longer processed manually; instead, they are evaluated through FBR’s computerized RMS under Rule 29 of the Sales Tax Rules, 2006.
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Know About Filing and Process of Sales Tax Refund Claims in FBR for 2026
Filing a sales tax refund claim with the Federal Board of Revenue (FBR) requires accuracy, proper timing, and compliance with prescribed rules. Any mistake can delay processing or result in rejection. To streamline refunds, Rule 28 of the Sales Tax Rules, 2006 (updated for tax year 2026) lays down a simplified and automated mechanism.
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